Treasury and IRS increase flexibility for 529 plans

A result of the financial crisis, the U.S. Treasury and the IRS are now giving investors more flexibility in managing their 529 plan accounts. A new ruling will allow 529 plan account owners to change their investment strategy twice per calendar year. The ruling is currently in effect only for 2009.

Previously, owners of 529 college savings plan accounts could change their investment strategy once per calendar year. The revised ruling is in response to a request from the College Savings Plans Network (CSPN) and other college savings groups; CSPN is working to extend the ruling beyond 2009.